Saudi's Falih says more oil output cuts possible, will assess in July

Oil falls on potential undermining of OPEC-led deal

Oil prices rose about 1% on Thursday after a larger than expected draw in U.S. inventories, providing some relief amid investor scepticism that Opec-led cuts will be enough to rebalance an oversupplied market.

The move pushed Brent crude prices up as much as 1 percent, before paring gains to trade down 30 cents at $49.65 a barrel at 1046 GMT (6:46 a.m. ET). He said his administration could try to renegotiate the existing agreement or try to create a new one that is more favorable to the U.S.

Brent oil tumbled below $50 on Friday, heading for a second straight week of losses, on worries that U.S. President Donald Trump's decision to abandon a climate pact could spark more crude drilling in the United States, worsening a global glut.

They dropped $1.34, or 2.7 percent, in the previous session to settle at $48.32 per barrel, the lowest close since May 12.

November's deal between OPEC and non-OPEC members like Russian Federation has been slow to take hold, as many nations sold inventory out of storage before truly cutting exports.

On its part, the US West Texas Intermediate crude futures fell 84 cents to $47.54 per barrel, figures from Reuters show.

He said the nation's oil production was still hovering around 1.5 million barrels per day, down from around 2.2 million b/d.

But U.S. production is not growing as fast as the government earlier predicted.


USA crude production last week was up by almost 500 Mbbl/d from year-earlier levels, straining OPEC's efforts to reduce global oversupply.

While there was a dip in OPEC supplies between February and April, a report on Monday by Thomson Reuters Oil Research said OPEC shipments likely jumped to 25.18 million bpd in May, up over 1 million bpd from April.

Hedge funds trimmed bets on rising crude prices to the lowest level since November as oil futures dipped below $50 a barrel amid skepticism an OPEC-led campaign to cut output will soon curb a worldwide supply glut.

In Libya, the state oil firm said output had reached 827,000 bpd on Wednesday, around levels last seen in 2014.

"As these numbers are getting confirmed, the initial optimism about OPEC's temporary cuts, may turn to increasing skepticism about OPEC's choice of policy once the current output deal expires next year", says Bjørnar Tonhaugen, VP Oil Markets at Rystad Energy.

The Organization of the Petroleum Exporting Countries extended a 2016 agreement which calls on most of its members and several non-members to collectively lower their oil output to help support oil prices.

Both Moscow and Riyadh said cooperation would continue beyond the current agreement as both countries were still trying to find ways to co-exist with USA shale oil producers, which are not part of the global output reduction deal.

Share

Related News

  • Spieth Right Back In The Mix At Memorial

    Spieth Right Back In The Mix At Memorial

    Dufner, 40, has won just four times on Tour, but he is a Major champion courtesy of the US PGA crown he earned in 2013. Dufner, who grew up in northern OH , missed the cut the first two times he played Muirfield Village.
    United States  approves social media background checks for Visa applicants

    United States approves social media background checks for Visa applicants

    It is unclear if the questionnaire will be approved for use after the initial six months are up. The temporary measure was fast-tracked by the Trump administration.
    The PS3 Console Has Ended Production Over In Japan

    The PS3 Console Has Ended Production Over In Japan

    As with every month, there's a total of six games up for grabs, four of which this month can be played on the PlayStation 4. Blood Knights and Port Royale 3 are also available on PS3 as part of May 2017 PlayStation Plus games lineup.
  • What is the Paris Climate Agreement?

    What is the Paris Climate Agreement?

    A White House official says President Donald Trump is expected to withdraw the United States from the Paris climate accord . Trump tweeted this morning: "I will be announcing my decision on the Paris Accord over the next few days".

    Hong Kong stocks hit 22-month high despite Moody's China downgrade

    China's total outstanding credit was worth an alarming 260% of its GDP a year ago , up from 160% in 2008, according to Bloomberg . By downgrading China's credit rating, Moody's said China's debt is likely to grow substantially, while its economy slows down.

    Trump budget chief: Medicaid cuts won't affect anyone now on program

    And Medicaid spending would fall from 2 percent of the economy to 1.7 percent in 2027 due to the reductions in Trump's budget. To explain why baseline budgeting needs to be retired, Mulvaney used the example of a program that cost $100 previous year .
  • Questions about Russian Federation chase Trump during first Israel visit

    The President edited the speech with his aides during the 14-hour journey from Washington, Spicer said. The U.S. has never recognized Israeli sovereignty over parts of the Old City seized in the 1967 war.

    Disney CEO Bob Iger quits Trump council over Paris climate agreement

    According to the agreement, by 2025, the USA was to reduce gas emissions by 26-28% in comparison with the levels seen ten years ago.

    To many Americans, Memorial Day has lost its meaning

    Many of us will spend the weekend cooking out, traveling , visiting lakes and rivers, and spending time with friends and family . This day was created to specifically honor those who died defending our freedom, our unity and our democracy.
  • Root stars in England win

    Root stars in England win

    The right-handed batsman's match-winning century ensured Tamim Iqbal's calm and composed ODI century for Bangladesh went in vain. Medium pacer Plunkett was the pick of the bowlers for England , taking four wickets in his 10 overs and conceding 59 runs.
    Alt-Right rally cancelled in Portland, moves to Seattle instead

    Alt-Right rally cancelled in Portland, moves to Seattle instead

    The federal government has declined to revoke a permit for Sunday's pro-Donald Trump free speech rally in downtown Portland. Local publications as well as the Southern Poverty Law Center have described him as a "known white supremacist".

    LeBron James punishes Celtics guard Terry Rozier

    And so, as I told our guys, we made a lot of great strides, but this pain is part of the path to what we ultimately want to be". One sequence said it all in the third quarter. "You've got one guy with 12 years, first Finals appearance, and another guy 14".